Practice question
A claimant proves that a director acted in bad faith in directing a particular transaction but seeks damages from an unrelated warehouse storm loss, conceding no causal connection to that conduct. No other legal basis is shown. Which is correct?
- Any bad faith makes the director insurer against every event
- The director’s title automatically supplies causation
- Every storm is legally caused by the board
- Section 30’s resulting-damages requirement still matters; the conceded unrelated loss is not established under that ground.
- No damages can ever follow bad faith
Legal references
- Revised Corporation Code, RA 11232, Sections 30 and 33: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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